What is Global Sourcing?
Global sourcing is a means by which international purchases of materials, processes, supplies, and various technologies are procured by an organization as part of a core procurement strategy.
With the demand for goods at an all-time high, the competitiveness among businesses looking to supply that demand is now more than ever.
The costs of materials, intensive local labor contract requirements, the lack of low cost sources and the rising costs for transport of goods have businesses looking for strategies to better their rivals. Many companies now turn to international purchasing strategies that minimize costs and maximize quality for their manufacturing and sourcing needs.
With the right partners, like Benefel, Global Sourcing helps solve the problems local business owners have in establishing a concrete supply source of materials and with procuring the right equipment using the most competitively priced pre-qualified equipment.
With Global sourcing, companies widen their reach, enabling them to work with all the advantages of globalization. Benefel brings together clients and vendors in a world market including local vendors to present innovative options and solutions that are available locally and others that are not available locally.
What are the Benefits of Global Sourcing for Small Businesses?
Small manufacturing businesses have to deal with a great many struggles. They are faced with the need to lower operation costs while increasing and/or maintaining the quality of their products. They often need to compete with other small and larger businesses that are offering similar products or alternatives to their products.
Many companies are forced to lower their prices to levels resulting in low profit margins. This approach to remain competitive is often not sustainable and requires new initiatives for the company to grow and flourish.
At Benefel, we understand these initiatives and have pre-qualified both local and international Global sources for your company to include in its strategic planning.
Benefits that Benefel brings to the table:
- Reducing operational expenditure on Machinery and Materials by providing options that have proven their competitive position on a Global Scale
- Global competitiveness through networks established with clienteles and dealers all over the world
- Increase performance ratings throughout the company with access to technological advancements, innovations and expertise that is only found on a Global scale
- Increased competitive advantage over rivals
- Refocusing on strategies, core-processes and other company needs that cannot be serviced as effectively/competitively through local sourcing alone
- Increased capabilities of utilizing a wider variety of option to meet a clients’ requirements
What are Common Problems with Global Sourcing?
As with all strategies in business, global sourcing also has problems that can come along with an inexperienced approach.
Where business were only using local suppliers there are a myriad of other considerations that come in to play:
- Knowing what options are out there and finding the one best suited to your operation
- Qualifying suppliers
- Confirming the good produced match your order/specification
- Communicating with Suppliers
- Dealing with different cultures
- Handling Problems with machinery or materials supplied from abroad
- Servicing and Maintaining Equipment
- Translation of communications and documentation
- International Money Transactions and handling them in a safe/secure way
- IP issues where foreign suppliers breach local patents or trademarks if their goods enter your local market
- Logistics like lead times and shipping
- Importation of goods and dealing with customs
How Can Benefel Help?
Benefel has developed sourcing strategies to find reliable, cost-effective overseas suppliers which can meet your demands. Benefel pre-qualifies all its suppliers taking out the “unknown factor”.
Benefel’s supply strategy ALSO incorporates local options as there are many local options that provide a level of innovation and competitiveness that can stand up on a Global stage.
In moving from domestic purchasing to one that also incorporates international purchasing, Benefel takes care of the common problems associated with Global Sourcing to simplify the process of purchasing for you and your business.
We can provide international options with specializations in your field to enhance your business and enable you to give your consumers the best product with a win-win business profits and customer pricing balance. We not only promise that we can lower costs in most cases, we also can provide new paths for you to create new strategies and innovative concepts.
Our sourcing strategy, with a network of trusted suppliers from all over the globe, will supply you with what you need to build and grow your business with Global competitiveness.